Chapter 1

Introduction to Quality management

 Outlines
Define of Quality Total Quality Management
The Evolution of Quality Management Obstacles to Implementing
The Foundations of Modern Quality TQM
Management: The Gurus
Insights on Quality Management
Criticisms of TQM
The Dimensions of Quality Problem Solving, and Process
Assessing Service Quality Improvement 394
The Determinants of Quality The Plan-Do-Study-Act Cycle
Responsibility for Quality
Benefits of Good Quality
Six Sigma
The Consequences of Poor Quality Quality Tools 398
The Costs of Quality Illustrations of the Use of Graphical
Ethics and Quality Management Tools 403
Quality Certification
ISO 9000, 14000, and 24700
Quality and the Supply Chain 389
Quality
The ability of a product or service to
consistently meet or exceed
customer expectations.
Quality chain
interrelated aspects of quality

• Quality of design: a measure of how well the product or service is designed to

achieve the agreed requirements

• Quality of conformance to design: the extent to which the product or service achieves the quality
of design
Defining Quality: The Dimensions of Quality

• Product Quality. Product quality is often judged on nine dimensions of quality

• Performance—main characteristics of the product
Aesthetics—appearance, feel, smell, taste
Special features—extra characteristics
Conformance—how well a product corresponds to design specifications
Reliability—dependable performance
Durability—ability to perform over time
Perceived quality—indirect evaluation of quality (e.g., reputation)
Serviceability—handling of complaints or repairs
Consistency—quality doesn’t vary
Examples of
product
quality
Service Quality

• Convenience—the availability and accessibility of the service

Reliability—the ability to perform a service dependably, consistently, and accurately
Responsiveness—the willingness of service providers to help customers in unusual situations and to deal
with problems
Time—the speed with which service is delivered
Assurance—the knowledge exhibited by personnel who come into contact with a customer and their ability
to convey trust and confidence
Courtesy—the way customers are treated by employees who come into contact with them
Tangibles—the physical appearance of facilities, equipment, personnel, and communication materials
Consistency—the ability to provide the same level of good quality repeatedly
Expectations—meet (or exceed) customer expectations
 Examples of
service quality
dimensions for
having a
car repaired
The Determinants of Quality

• The degree to which a product or a service successfully satisfies its

intended purpose has four primary determinants:
1. Design
2. How well the product or service conforms to the design
3. Ease of use
4. Service after delivery
Responsibility for Quality

• Top management
• Design
• Procurement
• Production/operations
• Quality assurance
• Packaging and shipping
• Marketing and sales
• Customer service
 The Consequences of Poor Quality:
Hậu quả của kém chất lượng
▪ Loss of business
▪ Liability: Trách nhiệm pháp lý
▪ Productivity
▪ Costs

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The Costs of Quality
• Appraisal costs relate to inspection, testing, and other activities intended to uncover defective products or
services, or to assure that there are none.

• Prevention costs relate to attempts to prevent defects from occurring

• Failure costs are incurred by defective parts or products or by faulty services

• Internal failures are those discovered during the production process;
• external failures are those discovered after delivery to the customer
QUALITY MANAGEMENT?
• Are we capable of
doing the job correctly
• Quality and
processes
• QUALITY IN ALL
FUNCTIONS

• QUALITY STARTS
WITH
UNDERSTANDING
THE NEEDS
THE EVOLUTION OF QUALITY MANAGEMENT

• 1924 - Statistical process control charts

• 1930 - Tables for acceptance sampling
• 1940’s - Statistical sampling techniques
• 1950’s - Quality assurance/TQC
• 1960’s - Zero defects
• 1970’s - Quality assurance in services
• Total quality management

• Quality Assurance
• Emphasis on finding and correcting defects before reaching market
• Strategic Approach
• Proactive, focusing on preventing mistakes from occurring
• Greater emphasis on customer satisfaction
THE FOUNDATIONS OF MODERN QUALITY
MANAGEMENT
INSIGHTS ON QUALITY MANAGEMENT

• various aspects of quality:

• defining quality in operational terms,
• understanding the costs and benefits of quality,
• recognizing the consequences of poor quality,
• and recognizing the need for ethical behavior
• Quality management activities:
• Quality planning
• Quality control
• Quality assurance
• Quality improvement
QUALITY CERTIFICATION: international standard organisation

• ISO 9000
• Set of international standards on quality management and quality
assurance, critical to international business
• ISO 14000
• A set of international standards for assessing a company’s environmental
performance
• ISO 24700
• pertains to the quality and performance of office equipment that contains
reused components
Eight quality management principles form the basis of the latest version of ISO 9000

• 1. A customer focus
2. Leadership
3. Involvement of people
4. A process approach
5. A system approach to management
6. Continual improvement
7. Use of a factual approach to decision making
8. Mutually beneficial supplier relationships
The standards for ISO 14000 certification bear upon three major areas

• Management systems—systems development and integration of environmental responsibilities into

business planning
• Operations—consumption of natural resources and energy
• Environmental systems—measuring, assessing, and managing emissions, effluents, and
other waste streams
TOTAL QUALITY MANAGEMENT

• A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve
customer satisfaction.
• three key philosophies in this approach:
• One is a never-ending push to improve, which is referred to as continuous improvement;
• the second is the involvement of everyone in the organization;

• and the third is a goal of customer satisfaction, which means meeting or exceeding customer expectations

• TQM expands the traditional view of quality—looking only at the quality of the final product or services—to
looking at the quality of every aspect of the process that produces the product or service
TQM approach

• 1. Find out what customers want

• 2. Design a product or service that will meet (or exceed) what customers want. Make it easy to use and easy
to produce.

• 3. Design processes that facilitate doing the job right the first time

• 4. Keep track of results, and use them to guide improvement in the system. Never stop trying to improve.

• 5. Extend these concepts throughout the supply chain.

• 6. Top management must be involved and committed. Otherwise, TQM will just be another fad that fails and
fades away
 Elements of TQM
1. Continual improvement
2. Competitive benchmarking
3. Employee empowerment
4. Team approach
5. Decisions based on facts
6. Knowledge of tools
7. Supplier quality
8. Champion
9. Quality at the source
10. Suppliers
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 Continuous Improvement
▪ Philosophy that seeks to make never-
ending improvements to the process of
converting inputs into outputs.
▪ Kaizen: Japanese
word for continuous
improvement.

9-25
 Quality at the Source

The philosophy of making

each worker responsible for
the quality of his or her work.

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Obstacles to Implementing TQM

• Lack of:
• Company-wide definition of quality
• Strategic plan for change
• Customer focus
• Real employee empowerment
• Strong motivation
• Time to devote to quality initiatives
• Leadership
 PROBLEM SOLVING AND PROCESS IMPROVEMENT

Basic steps in
problem solving
 The PDSA Cycle
Figure 9.2
Plan

Act

Do

Study
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The PDSA cycle
applied to
problem solving
overview of
process
improvement
 Six Sigma

▪ Statistically
▪ Having no more than 3.4 defects per million
▪ Conceptually
▪ Program designed to reduce defects
▪ Requires the use of certain tools and
techniques

Six sigma: A business process for improving

quality, reducing costs, and increasing
customer satisfaction.
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 Six Sigma Programs
▪ Six Sigma programs
▪ Improve quality
▪ Save time
▪ Cut costs
▪ Employed in
▪ Design
▪ Production
▪ Service
▪ Inventory management
▪ Delivery

9-33
 Six Sigma Management

▪ Providing strong leadership

▪ Defining performance metrics
▪ Selecting projects likely to succeed
▪ Selecting and training appropriate people

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 Six Sigma Technical
▪ Improving process performance
▪ Reducing variation
▪ Utilizing statistical models
▪ Designing a structured improvement
strategy

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 Six Sigma Team
▪ Top management
▪ Program champions
▪ Master “black belts”
▪ “Black belts”
▪ “Green belts”

9-36
 Six Sigma Process: DMAIC
▪ 1. Define: Set the context and objectives for improvement.
2. Measure: Determine the baseline performance and capability of
the process.
3. Analyze: Use data and tools to understand the cause-and-effect
relationships of the process.
4. Improve: Develop the modifications that lead to a validated
improvement in the process.
5. Control: Establish plans and procedures to ensure that
improvements are sustained.

9-37
QUALITY
TOOLS: The
seven basic
quality tools
check
sheet
histogram
Pareto
diagram
scatter
diagram
control chart
cause-and
effect
diagram
Illustrations
of the Use
of Graphical
Tools
Comparison of before and
after using Pareto charts
Using a control chart to track improvements
Quality Control

• Quality assurance that relies primarily on inspection of lots (batches) of previously produced
items is referred to as acceptance sampling.

• Quality control efforts that occur during production are referred to as statistical process control

• The best companies emphasize designing quality into the process

• different business organizations are in different stages of this evolutionary process

Overview
of quality
control
INSPECTION

• 1. How much to inspect and how often

2. At what points in the process inspection should occur
3. Whether to inspect in a centralized or on-site location
4. Whether to inspect attributes (i.e., count the number of times something occurs) or variables (i.e.,
measure the value of a characteristic)
• Inspection before and after production often involves acceptance sampling procedures;
monitoring during the production process is referred to as process control
 Where to Inspect in the Process

▪ Raw materials and purchased parts

▪ Finished products
▪ Before a costly operation
▪ Before an irreversible process
▪ Before a covering process

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 Inspection Costs

used to evaluate process output to decide if a process is “in control” or if corrective action is needed
STATISTICAL PROCESS CONTROL

• used to evaluate process output to decide if a process is “in control” or if corrective action is needed

• Process Variability
• Are the variations random? - natural or inherent process variations

• Given a stable process, is the inherent variability of process output within a range that
conforms to performance criteria?
Sampling and Sampling Distributions
Percentage of
values
within given
ranges in a
normal
distribution
The Control Process

▪ Define: detail what is to be controlled

▪ Measure: Only those characteristics that can be counted or measured are candidates for control
▪ Compare: standard of comparison
▪ Evaluate: distinguish random from nonrandom variability
▪ Correct: corrective action must be taken
▪ Monitor results: To ensure that corrective action is effective
Control Charts: The Voice of the Process
Control limits are based on
the sampling distribution
Type I and Type II errors
The
probability
of a Type I
error
Control Charts for Variables - measure the value of a characteristic

• Mean and range charts are used to monitor variables.

• Control charts for means monitor the central tendency of a process,

• Range charts monitor the dispersion of a process

Mean Charts
If the
standard
deviation of
the process is
unknown
Range control charts (R-charts)
Control Charts for Attributes - process characteristic is counted rather than measured

• two types of attribute control charts:

• p-chart is used to monitor the
proportion of defective items
generated by a process.

• c-chart Control chart for attributes,

used to monitor the number of
defects per unit
The centerline on a p-chart is the
average fraction defective in the
population, p
c-Chart
run test which checks for patterns in a sequence of observations

• Two useful run tests involve

examination of the number of
• runs up and down (U and D)
• Runs above and below the
median (A and B)